Econocasts

Sunday, April 13, 2014

The VIX cycle model suggests higher VIX prices are to be
expected over the next year. However, astute readers will notice that
as shown above, the turning points are better predicted than the
magnitude of the change at those points. Right now, according to the
model, the VIX is below the predicted curve, and a very short term upward correction, as
happened after previous positive and negative spikes, is very likely.
Readers may note I lifted some of the above text from a previous post from January, 2014, shown here. The model has not changed much at all. Here it is below.